A USA TODAY Snapshot states that 53% of adult shoppers prefer to pay cash for purchases, 30% use checks, 16% use credit cards, and 1% have no preference. The owner of a large store randomly selected 800 shoppers and asked their payment preferences. The results were that 400 paid cash, 210 paid by check, 170 paid with a credit card, and 20 had no preference. At α = 0.01, test the claim that the owner’s customers have the same preferences as those surveyed.
Perform these steps.
a. State the hypotheses and identify the claim.
b. Find the critical value.
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.